Banks across the United States are tightening deposit policies and extending hold times as check fraud incidents skyrocket. The Financial Crimes Enforcement Network, a division of the Department of the Treasury, reports a staggering 400% increase in check fraud over the past year. In 2023 alone, fraudsters stole $26.2 billion directly from mailboxes, marking a resurgence in an old-fashioned yet highly effective crime.
The New Age of Old-School Crime
While modern scams like cryptocurrency fraud and AI deepfakes dominate headlines, check fraud remains a persistent threat. Criminals exploit private groups on platforms like Telegram, Facebook, and TikTok to exchange tips and sell tools that aid in their schemes. These tools include universal keys for USPS drop boxes and blank checkbooks sourced from the dark web.
Many fraudsters resort to simple methods, stealing checks directly from mailboxes. Using household chemicals such as acetone, they erase the original details and rewrite checks payable to themselves or their aliases. Once altered, the checks are deposited at ATMs or via mobile banking apps, allowing the thieves to withdraw cash in increments that avoid triggering security alerts.
Banks Respond with Stricter Measures
In response to this growing threat, banks have implemented more rigorous measures to combat fraud. Stricter deposit policies and extended hold times on check deposits have become the norm. These delays allow banks additional time to verify deposits for potential fraud, which may explain why funds are clearing more slowly than before.
A recent TikTok glitch targeting JPMorgan Chase’s instant access feature for deposits further highlights the risks. Scammers exploited the system by depositing bad checks, prompting lawsuits and widespread scrutiny.
Steps to Protect Yourself
To safeguard your finances from check fraud, consider the following precautions:
- Invest in a USPS-Approved Locking Mailbox: These mailboxes add an extra layer of security to prevent casual theft.
- Set Up Banking Alerts: Monitor your bank account for unusual activity. Alerts for large withdrawals or suspicious transactions can help you catch fraud early.
- Avoid Sending Checks by Mail: For bill payments or one-time transactions, use secure digital platforms like Zelle, Venmo, PayPal, or ACH transfers. If sending sensitive items like checks or cash, deliver them directly inside a post office rather than using outdoor mailboxes.
- Enroll in USPS Informed Delivery: This free service lets you track incoming mail online, providing early warnings if items go missing.
- Use Fraud-Resistant Pens: Special pens designed to prevent ink alteration can help protect your checks from tampering.
Reporting Fraud
If you suspect fraud or notice a missing check, file a report immediately with your bank, USPS, and local law enforcement. Request a case number to track the status of your claim.
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